How do I collect my judgment?
 

  1. INTRODUCTION: JUDGMENT

    2. A. THE JUDGMENT CREDITOR MUST COLLECT THE JUDGMENT

    The judgment creditor (the party who has won judgment) must take affirmative steps to collect the judgment amount; the Court will not collect for the judgment creditor. The Small Claims Court judgment becomes final and enforceable 30 days after the clerk has delivered or mailed the "Notice of Entry of Judgment" (SC-130). The "Notice of Entry of Judgment" date of mailing will be stamped on the form itself. If the defendant files an appeal and loses, the judgment becomes enforceable after transfer of the case from superior court to the Small Claims Court. This transfer usually occurs within 10 days.

    B. A NOTE ABOUT THE JUDGMENT DEBTOR

    The judgment debtor (the party who has lost judgment) should pay the judgment amount immediately. If a judgment debtor fails to pay the judgment amount within 30 days of the "Notice of Entry of Judgment" date, the debtor must complete and return a "Judgment Debtor's Statement of Assets" (SC-133) form to the judgment creditor. This form provides the judgment creditor with information concerning the debtor's property and sources of income. The judgement creditor can use this information to assist in the collection of the judgment amount owed. If the judgment debtor does not complete the "Judgment Debtor's Statement of Assets," the judgment creditor may bring the debtor into court to complete this form through an "Application and Order to Produce Statement of Assets and to Appear for Examination" (SC-134).

  2. OPTIONS FOR THE JUDGMENT DEBTOR

This section highlights ways for the debtor to satisfy a judgment. Several books give a far more thorough treatment of this area than is possible here. One is How to Collect When You Win a Lawsuit, a comprehensive and well-written book available from bookstores and Nolo Press at (800) 992-6656 or order online at www.nolo.com. A good legal text on judgment enforcement procedures should be consulted prior to using any of the steps set forth below.

1. PAY THE JUDGMENT TO THE COURT

The judgment debtor may pay the judgment directly to the court for a fee of $25. The judgment debtor pays the judgment by completing the form "Request to Pay Judgment to the Court" (SC-145) and submitting the amount of the total judgment, including costs and interest. There are several reasons why you might make payment directly to the Court: (1) You may wish to avoid contact with the plaintiff, (2) You cannot find the plaintiff, or (3) You may wish to resolve this immediately. The Court (and not the judgment creditor) is then responsible for completing the "Acknowledgment of Satisfaction of Judgment" (EJ-100) and entering satisfaction. If you pay by cash or cashier's check, then the satisfaction of judgment is entered immediately. Otherwise, there is a 30 stay pending full reimbursement from a bank for a personal check.
  1. INSTALLMENT PAYMENTS

    2. If the judgment debtor is unable to pay the whole judgment at one time, then the judgment debtor may pay the amount of the judgment in installments. The judgment debtor should first ask the judgment creditor if the judgment creditor is willing to accept installment payments. If the judgment creditor insists on receiving the full amount, or if both parties cannot agree on an installment payment plan, the judgment debtor can file a "Request to Pay Judgment in Installments" (SC-106) form. This form must be filed with a "Financial Statement" (Form 982.5(5.5)), a financial declaration form. Both the "Request to Pay Judgment in Installments" and the "Financial Statement" will be mailed to the judgment creditor by the court. The judgment creditor can either oppose your request or agree to it. A hearing may or may not be held.

    3. PROTECTING PROPERTY OR INCOME FROM COLLECTION

    A judgment debtor may be able to legally protect some or all of his or her assets (property) and income from being taken to pay the judgment. It may be possible to protect necessities of life such as one's house, furniture, clothes, car (within certain price limitations), certain other personal property, and all or a portion of one's earnings. In addition, workers' compensation, unemployment, pension, social security, welfare, or insurance payments are protected and cannot be taken to satisfy a judgment. CCP Sections 703 & 704.

    Caution: Some assets of a judgment debtor are automatically protected, but, in the case of others, you must ask the court to determine that the assets are exempt from enforcement action. To protect these assets, you must file a "Claim of Exemption" (EJ-160, Form 982.5(5)) form within 10 days after you receive the notice that the judgment creditor is taking enforcement action. You can obtain the form from the clerk or the internet. List the property you believe is exempt. If enforcement action is taken against your earnings, list all of your income and expenses. The court will decide which assets and how much of your earnings are protected from collection.

    III. OPTIONS FOR THE JUDGMENT CREDITOR

    This section highlights ways for the judgment creditor to collect his/her judgment. Several books give a far more thorough treatment of this area than is possible here. One is How to Collect When You Win a Lawsuit, a comprehensive and well-written book available from bookstores and Nolo Press at (800) 992-6656 or order online at www.nolo.com. A good legal text on judgment enforcement procedures should be consulted prior to using any of the steps set forth below.

    1. LEVY EXECUTION ON THE DEBTOR'S WAGES

    A wage garnishment orders the debtor's employer to give the sheriff, who then sends you, part of the debtor's wages until the debt is paid. To garnish wages, you need to complete a "Writ of Execution" (EJ-130) form, which directs the sheriff to enforce your judgment. It is issued by the small claims clerk. You'll also need to complete and pay a fee for an "Application for Earnings Withholding Order" (Form 982.5(1)).

    2. LEVY EXECUTION ON THE DEBTOR'S CHECKING OR OTHER BANK ACCOUNT (BANK LEVY)

    A bank levy means that money will be taken from the judgment debtor's bank account to pay the judgment. You'll need the name and branch address of the bank. Get a "Writ of Execution" (EJ-130) from the clerk. There is a fee to issue a "Writ of Execution".

  2. RECORD AN ABSTRACT OF JUDGMENT

An "Abstract of Judgment" (Form 982(a)(1)) puts a lien on any land, house, or other building the judgment debtor owns in the county where the "Abstract of Judgment" is recorded. Record the abstract in all counties where the debtor may own property. If the property is sold with title insurance, the debt will be paid out of the proceeds of the sale. Typically, you do not receive interest on the judgment, but only the principal stated in the "Abstract of Judgment." To record an "Abstract of Judgment," take your judgment to the small claims clerk, ask for an "Abstract of Judgment," have it issued by the Court, and take it to the County Recorder's Office to file.

4. HAVE THE SHERIFF DO A "TILL TAP"

If the judgment debtor is a business with a cash register, the sheriff can go to the business and take enough money out of the register to satisfy the judgment and the sheriff's fee. First, you must complete a Writ of Execution, have the clerk issue it, and take it to the sheriff. Instruct the sheriff to do a till tap. You must know the name and address of the business. If there is not enough money in the register to pay the judgment, you will have to pay another fee each time the sheriff goes back.
  1. PUT A "KEEPER" IN THE DEBTOR'S BUSINESS

    2. If the debtor is a business, the sheriff will, for a fee, remain in the debtor's business establishment and take all the funds that come in until the judgment is paid. The keeper can collect cash, checks, and bank credit card drafts. You will need the name and address of the business. Get a "Writ of Execution," have the clerk issue it, and take it to the sheriff. Tell the sheriff you want to put a keeper in the business. If the debtor closes the business while the sheriff is there, you'll have to pay another fee each time the sheriff goes back.

  2. CONDUCT A "JUDGMENT DEBTOR'S EXAMINATION"

    3. In a judgment debtor's examination, the debtor is ordered to appear in Court to answer the judgment creditor's questions about the existence and location of her salary, bank accounts, property, and anything else that could be used to pay the judgment. If you wish, you can subpoena the debtor's bank books, property deeds, paycheck stubs, and similar documents and require the debtor to bring them to the hearing. At the judgment debtor's examination, you may have the judge order the defendant to turn over any assets in his or her possession.

    To set a hearing on an "Application for Order to Produce Statement of Assets and to Appear for Examination" (SC-134), you must complete this form and present it to the clerk. After filing this form, the clerk will set a hearing date, note the hearing date on the form, and return two copies an original and one copy to you. You must have a copy of this form and a blank copy of the "Judgment Debtor's Statement of Assets (Form SC-133) personally served on the judgment debtor by a sheriff or licensed process server at least 10 calendar days before the date of the hearing. Then, you must file a "Proof of Service" (Form 2409) with the court. There is a fee for the hearing.

  3. SUSPEND DEBTOR'S DRIVER'S LICENSE

If you obtained a judgment for $500 or less in an auto accident case and the judgment is not paid within 90 days after the judgment becomes final, you may want to consider having the debtor's driver's license suspended for 90 days. You must complete form DL17, available from local offices of the Department of Motor Vehicles. If your judgment is for more than $500, you may have the license suspended indefinitely until the defendant pays the judgment. For further information, call the Department of Motor Vehicles Civil Judgment Unit at (916) 657-7573.

IV. PROHIBITED DEBT COLLECTION PRACTICES

Debtors are protected from certain abusive or unfair debt collection tactics. Creditors, including judgment creditors, cannot do or say certain things. For example, commercial debt collection agencies and persons who regularly collect their own debts are generally prohibited from making false or misleading statements to collect a consumer debt. It's also unlawful to harass the debtor, to request more than basic location information about the debtor from another person, to tell the debtor's employer or others that the debtor owes a debt (except in the course of wage garnishment proceedings), or to contact the debtor before 8:00 a.m. or after 9:00 p.m., or at any inconvenient time or place.

If you have any questions or concerns regarding permissible debt collection activities, call your small claims advisor, consult an attorney, or call the Federal Trade Commission's San Francisco office at (415) 356-5270 or the Los Angeles Regional Office at (310) 824-4300. You may file a complaint at the Federal Trade Commission website at www.f tc.gov.

V. ONCE THE JUDGMENT IS PAID

After the judgment debtor satisfies the judgment (in full or for a lesser amount if the parties agree), the judgment creditor is required to immediately sign the short "Acknowledgment of Satisfaction of Judgment" portion of the "Notice of Entry of Judgment" form and file it with the Small Claims Court. This form is like a receipt; it's needed to end the case.

If the judgment creditor has recorded an "Abstract of Judgment" in any county where the judgment debtor owns real property, a different acknowledgment form must be used. Also, the judgment creditor must sign the form in front of a notary public and record it with the county recorder's office in any county where he or she has filed an "Abstract of Judgment."

If the judgment creditor does not file the "Acknowledgment of Satisfaction of Judgment" with the court, the judgment debtor may ask the Small Claims Court for help. If proper proof of payment is provided (for example, a cash receipt signed by the judgment creditor or a canceled check or money order made out to and endorsed by the judgment creditor), the Small Claims Court can enter a "Satisfaction of Judgment" at the request of the judgment debtor.